I'm newly involved with a 501c3 that has their assets with an asset management company that's charging them 1.25%, while their needs are very basic. They're open to having me present lower-cost alternatives at the next meeting. I had/have some alternatives in mind, but would love help finding better ones -- or suggestions for other places to post this question (but not Bogleheads).
I'll call the 501c3 'DoGooder.' They have $500K-1m in investable assets. They don't need anything in the least fancy -- what they get now from their asset manager is fine: simply rebalancing of a 70/30 equity/bonds split (with a US/Ex-US/Emerging markets split for the equity portion), with Vanguard index funds or similar as the underlying investments. Even better if it could be socially conscious. BUT DoGooder wants to be entirely hands-off -- they're not comfortable having to buy or sell even under the direction of an advisor (except maybe once at initial set-up, I hope).
Alternatives I had/have in mind:
- Vanguard's Personal Advisor, at .3%. Unfortunately, it's only for individuals, not for 501c3s unless they have at least $5m.
- Similar offering from Fidelity. Also for individuals, not orgs.
- An allocation fund (e.g., a Vanguard LifeStrategy fund), with a fee-only advisor hired hourly for occasional hand-holding/guidance as needed. I think this is a good alternative, but would like others.
- A lower-cost asset manager or fee-only advisor who also executes trades. Fidelity can refer some that might be .75% instead of 1.25%. I don't know otherwise how to find one that serves 501c3s as opposed to just individuals, with low fees reflecting the very simple management needed here. Ideas?
- Vanguard's OCIO offering. I think it's for those with at least $2m, though I haven't confirmed that, nor the cost, nor whether it would do what DoGooder needs.
- Something else?
A little more background on DoGooder's money:
- They came into these assets within the past few years, in an event they don't expect will repeat itself.
- Their annual budget is in the lowish 5 figures, so most of their assets are for long-term investment.
(Also, I tried posting this question to Bogleheads, but it was removed because it's for an organization, not personal investing. Is there a better place to post it?) |
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